Dollar hits fresh 15-year-low against yen

Published 12:00 am, Thursday, October 14, 2010

TOKYO (AP) -- The dollar hit a fresh 15-year-low against the yen in Tokyo Thursday amid growing speculation that the Federal Reserve will ease monetary policy next month.

The U.S. currency was quoted at 81.23 yen at one point in early Thursday trading in Tokyo.

The dollar has been under pressure as investors bet that the U.S. Federal Reserve will enact a bond-buying program in early November. Buying bonds would drive interest rates and yields even lower, and tends to encourage dollar-selling.

Japan's finance minister has repeatedly warned Tokyo would take action to stem a rise in the yen. A strong yen hurts Japanese exporters as it cuts the value of their repatriated profits.

Japan intervened on Sept. 15 to weaken the yen, spending 2.12 trillion yen on currency intervention in the month through Sept. 28. The move worked initially, weakening the yen as hoped. But the impact was short-lived.